Mitsubishi Corp Shares Drop After 42% Profit Slump Despite Maintaining Annual Forecast

Shares of Mitsubishi Corp (TYO:8058) hit a one-month low on Wednesday after the Japanese trading giant reported a sharp 42% decline in first-half net profit, driven by weaker coal earnings and fewer capital gains. The company’s net profit fell to 356 billion yen for the six months ending in September, compared with 616 billion yen during the same period last year. The decline was largely attributed to a slowdown in its Australian coal business and a shortfall in investment-related income.

Following the disappointing earnings release, Mitsubishi Corp’s Tokyo-listed shares dropped as much as 2.4% to 3,482 yen, marking their lowest level since early October. This followed an earlier 4% fall on Tuesday, reflecting investor concern over the company’s short-term profitability. Despite the downturn, Mitsubishi maintained a bullish full-year profit forecast of 700 billion yen, expressing optimism that recovering commodity prices will help stabilize earnings in the second half of the fiscal year.

In a move to reassure investors and demonstrate financial resilience, the trading house also announced an increase in its dividend payout, raising it from 100 yen to 110 yen per share for fiscal 2025. The company’s confidence in maintaining its annual outlook suggests a belief that global demand and commodity price trends will improve.

While the results underscore the challenges faced by Japan’s major trading firms amid market volatility, Mitsubishi’s strong balance sheet and diversified portfolio continue to support long-term stability. Analysts note that the company’s ability to sustain dividends despite profit pressure reflects its strategic focus on energy transition, resource investment, and global supply chain resilience—key factors that could help bolster investor confidence moving forward.